Fuel costs hit US refined glycerine – suppliers

23 May 2008 20:22  [Source: ICIS news]

HOUSTON (ICIS news)--Freight fuel surcharges are raising delivery costs in the US refined glycerine market, suppliers said on Friday.

 

“We got hit with a 66% fuel surcharge at one food-related group in Florida,” a glycerine distributor said.

 

“It was at 52%, but it went up and may be the highest ever,” the source said.

 

US gasoline and diesel prices have been climbing steadily in lockstep with ever-increasing crude costs.

 

Other glycerine market participants agreed that fuel costs were beginning to have a substantial effect on price levels for the material.  As crude prices continue to rise, there is little prospect of relief, the market sources said.

 

A large supplier said regional destinations for the product make a difference.

 

“If material goes into the Midwest or northeast, it’s not so bad. But if it had to move into Texas or the southeast, the cost can be substantially higher,” the source said.

 

Refined glycerine of either vegetable or tallow origin or USP (US Pharmacoepia) quality is used extensively in food and food related applications, ranging from ice cream to processed bakery products to jams and jellies.

 

US glycerine producers include Procter & Gamble, Uniqema, Dial, Cognis and Cargill, among others.

 

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By: Judith Taylor
+1 713 525 2653

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